Alligator Bioscience (NASDAQ: ALLG) said its shares rose 13.07% in pre‑market trading to $0.032, up $0.0037 from the prior close of $0.0283. The stock remains far below its 52‑week high of $5.595 and only marginally above its 52‑week low of $0.0283, having lost 99% over the past year and 92% year‑to‑date, according to InvestingPro data.
For the second quarter of 2026, the company disclosed a cash balance of SEK 16.16 million and a bridge loan of SEK 19 million secured in July. It also announced a rights issue of approximately SEK 225 million, of which SEK 125 million was approved at an extraordinary general meeting held on the call date. The issue is structured as five unit rights per share, each unit comprising two ordinary shares and one warrant. Trading of the unit rights is slated for 4‑15 September, with subscription open 4‑18 September and results expected on 22 September.
Alligator is cutting operating expenses, now running below the earlier estimate of SEK 15‑20 million per quarter. The company’s current ratio stands at 1.76, while its return on assets is negative 51%.
Strategically, Alligator is abandoning independent development of its lead cancer drug mitazalimab and the planned Phase III study combining it with FOLFIRINOX. CEO Søren Bregenholt said the move reflects a shift in the treatment landscape toward KRAS inhibitors, making further investment in mitazalimab “not prudent or rational.” The firm is reducing staff and refocusing on a royalty‑based model centred on HLX22, a HER2‑targeted antibody developed with Shanghai Henlius Biotech.
HLX22’s royalty potential is projected at SEK 150‑450 million ($15‑45 million) annually, representing a 1.75% stake in net sales after development costs. Phase II data previously showed an 80% reduction in the risk of progression or death versus standard therapy in gastric cancer, with follow‑on data extending beyond 39 months. Phase III data are expected in the second half of 2027, commercial launch around 2029, and the first royalty payments anticipated in 2030.
The company also highlighted other pipeline assets, including divarasib, a KRAS inhibitor expected to receive U.S. approval in 2025, and collaborations with AbClon (Korea), Revolution Medicines and Aptevo (Seattle). The pancreatic cancer market, which includes roughly 1.1 million new gastric and gastro‑esophageal cases annually, has about 100,000 patients eligible for first‑line metastatic HER2‑positive treatment. Approximately 90% of pancreatic cancer patients carry KRAS mutations.
“We see HLX22 as the principal value driver, delivering a 1.75% royalty on net sales without development costs,” Bregenholt said. He added that the rights issue represents “a very interesting financial opportunity” for the company.
Alligator expects wind‑down costs for the discontinued mitazalimab program in Q3 and Q4 2026, with possible extensions into 2027. The rights issue proceeds are intended to fund the royalty‑focused strategy and sustain operations through the upcoming clinical milestones.
